Section1: Company Overview and Fundamental Insights:

1.1 Company Overview:

Alphamin Resources Corp. (TSXV: AFM) is a Mauritius-based company, which is engaged in the production and sale of tin concentrate from the Bisie Tin mine in the Democratic Republic of the Congo (DRC). The Company produces tin concentrate from its deposit at Mpama North. In addition, the Company has five exploration licenses covering a total of approximately 1,270 square kilometers in the North Kivu Province of the Democratic Republic of Congo (DRC). Kalkine’s Penny Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 5 Shareholders:

The top 5 shareholders together form ~59.47% of the total shareholding. Tremont Master Holdings and Fidelity International hold a maximum stake in the company at ~­­­57.17% and ~0.87%, respectively.

1.4 Key Metrics:

The company reported higher payable tin production number in Q1 2023. The group also managed to curtail its AISC in the reported period compared to Q1 2022 and maintained its industry beating debt to equity ratio, demonstrating its strength and adaptability.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates: The below picture gives an overview of the company’s recent activity, where it announced regarding development of the Mpama South project.

2.2 Insights on Q1 2023 Financial Performance:

Section 3: Key Risks and Company Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

The stock has witnessed an upside of ~6.31% and ~18.82% over the last 1 week and 1 month respectively. Moreover, the stock is trading above the average 52-week high price of CAD 1.08 and 52-week low price of CAD 0.57 providing an opportunity to ride the trend.

4.2 Fundamental Valuation

Valuation Methodology: EV to Sales Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is June 27, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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Disclaimer

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